Effect of FOMC minutes on various currencies:
INR opened depreciated today on FED taper talk. INR opened at 62.90. 0.35 depreciated from yesterday (20/11/13) close. INR had appreciated last week from 63.90 levels on global weakness of USD and RBI strong stand on INR depreciation. Better than expected export data also helped INR keeping appreciation track up to 62.
FED has indicated that asset purchase programme may be withdrawn. Fed has also indicated that this even after completion of asset purchase programme policy stand may remain soft for extended period of time, till job maket does not improve. Inflation is also below its long term target of 2%.
EUR depreciated slightly today to 1.3435. After minutes yesterday, speculation brought EUR down to this level from 1.3550. We do expect EUR to remain on depreciation track.
GBP has also depreciated to 1.6098 levels today. AUD is leading losing streak by depreciating up to 1%. Today BOJ completed its two day policy meet and end was well anticipated by market, no change in policy rate and continuation of loose monetary policy for extended period of time.